Urgent clarification has been demanded on adult education budget cuts after an announcement to metro mayors sparked confusion in England’s non-devolved areas.
Last week, FE Week revealed combined authority mayors were told to expect a reduction in skills budgets of 2 to 3 per cent for the 2025-26 academic year.
But Caroline McDonald, chief executive of Holex, said the news caused “widespread confusion and frustration” as providers funded by central government had received “no communication whatsoever”.
HOLEX, which represents adult education providers including local authorities, has sent a letter to education secretary Bridget Phillipson calling on her to “review and reconsider” the cuts.
McDonald called the Department for Education’s approach “fragmented” as although some mayors have kept providers in their areas informed, others remain in the dark.
This is causing “operational uncertainty” and “undermining the confidence” of providers, the chief executive added.
The budget cuts come as the UK shared prosperity fund drops 40 per cent to £900 million in April, and the three-year adult numeracy programme Multiply ends.
Community learning impact
Kent and Essex county councils, which have the largest national local authority adult learning budgets in the country, both said they had yet to receive specific details about budget reductions.
A spokesperson for Kent County Council, which is predicting a 3.3 per cent cut to its £8.7 million annual budget, said there was “significant demand” from residents seeking to improve their education, training and skills.
They added: “Any cuts planned by the Education and Skills Funding Agency will see a significant reduction in the number of courses we will be able to provide from August.
“Fewer courses mean fewer residents able to develop their education and skills, limiting their employment prospects and impacting their personal development and wellbeing.”
Mayors’ warning
About 60 per cent of England’s adult education budget is devolved to mayors.
It is understood the DfE sends mayors informal letters each January outlining how much they are likely to receive.
This resulted in mayoral officials warning providers in their regions they should prepare for reductions of 2 to 3 per cent.
England’s main adult education budget, the adult skills fund, amounts to about £1.4 billion this year.
The money – which focuses on employability skills but also includes broader ‘tailored learning’ – is handed out to FE colleges, independent training providers and local authorities.
FE Week estimates the cuts planned in the next academic year would save the DfE £30 million.
The Office for Budget Responsibility had previously said the government’s spending plans involved a 1.1 per cent cut each year in unprotected budget areas, including further education and skills, from 2025-26.
This follows two decades of budget reductions, with total public spending on adult classroom-based learning falling from £5.1 billion in the early 2000s to £1.7 billion in 2023-24, according to the Institute for Fiscal Studies.
In the same period, the number of publicly funded qualifications taken by adults in England has fallen from 5.6 million to 2.3 million, with level 1 and below suffering the steepest decline.
‘Economically illiterate’
Leaders in the FE sector have argued spending cuts contradict the government’s commitment to “driving economic growth”.
A lack of investment in skills, both from the public and private sector, is understood to be a key driver of persistent job vacancies, a low national productivity rate and a reliance on migration in some sectors.
Association of Colleges chief executive David Hughes said: “We know the DfE is under financial pressure and this cut is presumably part of a wider package of measures DfE is having to take to make its books balance.
“The sooner that package is communicated, the better. With the spending review due in June, our concern is what this might indicate for all post-16 funding for the next few years.”
Former North of Tyne mayor Jamie Driscoll, who oversaw a £23 million adult skills budget, called cuts to adult education “economically illiterate”.
He said: “The government keep banging on about growth, then cut skills training – when the number one barrier to growth is finding skilled workers.
“The axe will fall on all the courses that help the hardest to reach get into employment.”
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